Isaac Cruz, P.C. assists closely-held companies, corporations, partnerships both United States and Foreign including non-residents with ongoing tax compliance needs relating to their U.S. tax reporting requirements. We offer international tax planning and compliance services to foreign companies and their U.S. subsidiaries. We work with our clients in understanding and navigating through the complexities of U.S. tax laws impacting foreign-owned U.S. companies.
Our close proximity to Latin America has allowed us to develop considerable knowledge of this region. We are familiar with the cultural and business landscapes of various countries in the region, allowing for knowledgeable, cost efficiency, and responsiveness.
We advise and consult with our corporate and individual clients on a number of factors that potentially impact U.S. investments, including:
STRUCTURING UNITED STATES INVESTMENTS
1. Entity Selection and Structure
In selecting a form of business entity in which to engage in business in the United States, the organizer or initial owners should consider the following five business entity forms:
- C Corporation
- Limited Liability Company (“LLC”)
- General Partnership
- Limited Partnership
- Limited Liability Partnership (“LLP”)
2. Entity Formation
Forming a new entity is a legal service that can be provided to you by your attorney or legal representative. However, entities can be formed through several online services. Listed are several services that you may consider using in forming your new entity.
After you form your new company, it is absolutely essential for you to keep accurate and up to date records. The IRS requires it!
3. Federal Identification Number
The Federal Employer Identification Number (EIN) is used to identify a business entity. The EIN is your permanent number and can be used immediately for most of your business needs, including opening a bank account, applying for business licenses, and filing a tax return by mail. The EIN can be applied for online at the following Internal Revenue Service website:
The EIN application will require identification numbers from the applicant that a foreign applicant may not have. A foreign applicant will need a consultation with the CPA or their attorney to explain these requirements.
United States Tax Resident
Earned Income Exclusion (Living and Working Abroad)
The United States imposes taxes based on citizenship and not on residence. This can result in double taxation. In general, United States citizens pay income taxes to the country in which they work and still remain subject to United States taxation.
Internal Revenue Code Section 911 allows United States Taxpayers (who meet certain requirements) to elect to exclude from United States taxation a limited amount of foreign earned income along with housing costs. United States citizens can also claim a credit for foreign taxes paid.
Isaac Cruz, P.C. can assist with complexities of Internal Revenue Code 911 requirements and calculations.
We can prepare all of the annual tax forms related to a foreign corporation’s U.S. investments bringing together the compliance with the tax planning process in an efficient manner.
For more information, please call us: (281) 435-2542